Question

Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system: Activity Cost Pool (and Activity Measure) Total Cost Machine related (machine-hours) $ 123,000 Batch setup (setups) $ 497,250 Order size (direct labor-hours) $ 96,050 Total Activity Activity Cost Pools Product X Product Y Total Machine related 1,300 6,200 7,500 Batch setup 2,800 4,700 7,500 Order size 6,300 2,200 8,500 The total amount of overhead cost allocated to Product X would be closest to: (Do not round your intermediate calculations.) Multiple Choice $438,150 $497,250 $256,830 $278,150

Answer 1

Calculate product allocated to product X

	Product X
Machine related (123000/7500*1300)	21320
Batch setup (497250/7500*2800)	185640
Order size (96050/8500*6300)	71190
Total Cost	278150

So answer is d) $278150